SiFive, a semiconductor startup that counted Google as a user of its products, has laid off 20% of its staff, or about 130 people, a company spokesperson confirmed. It’s a sign of strain within the semiconductor sector even as intense demand for artificial intelligence chips buoys Nvidia and others.

SiFive, which was valued on paper at $2.5 billion in a financing round last year, is one of the most prominent companies pioneering RISC-V (pronounced risk five), an open-sourced chip design that competes with chip designs from Arm Holdings. Chief Executive Patrick Little called the layoff a “significant restructuring” and said the management team “felt the need to deeply evaluate and recalibrate our priorities,” according to an email from employees viewed by The Information.